Uniswap's UNIfication proposal has just been finalized. In the December 25th vote, the proposal received support from 125 million UNI, far exceeding the legal threshold, marking an overwhelming victory. Most importantly, the proposal will be officially implemented on-chain after the lock-up period, which means Uniswap's value model is about to undergo a structural transformation.

How significant is the change? Two major mechanisms will be launched simultaneously. First, the destruction of 100 million UNI tokens, sourced from the protocol treasury, effectively tightening the circulating supply permanently. Second, the activation of protocol-level fee functionality, marking the first time in Uniswap's history that revenue is directly derived from trading fees—previous frontend fee models will be phased out, shifting value capture from the platform layer back to the protocol layer.

It sounds perfect, but risks are also on the table. Once protocol fees are activated, they will directly reduce LPs' yield distribution. If incentives do not keep pace, liquidity providers might choose to migrate to v4 or simply withdraw. Even more concerning, if excessive reliance on UNI incentives to compensate LP losses, the inflationary gains from destruction could be offset by subsequent new incentives—essentially self-weakening.

Next, three trends to watch: whether the destruction and fee switch are implemented smoothly, how liquidity will flow between v3 and v4, and whether the governance layer will make subsequent adjustments to LP incentives. The success or failure of UNIfication ultimately depends on whether execution and revenue balance can reach a delicate equilibrium.